At Amazon, net sales in the second quarter ended June 30 rose 13.3%, to $167.7 billion, and net income rose 34.9%, to $18.2 billion.
During the period sales in North America rose 11%, to $100.1 billion, while international sales rose 16%, to $36.8 billion, increasing 11%, excluding changes in foreign exchange rates. Sales in the AWS cloud computing services division rose 17.5%, to $30.9 billion.
The company predicted that net sales in the third quarter will grow 10%-13%, to between $174 billion and $179.5 billion, and operating income will be in a range of $15.5 billion and $20.5 billion, compared to $17.4 billion in the same period in 2024.
Revenue and net income in the quarter was higher than analysts' expectations. Nevertheless, Amazon stock fell 7% in after-market trading because, as the Wall Street Journal put it, "the cloud business wasn't growing as much as rivals'." It quoted Jefferies analyst Brent Thill, who said that Amazon's cloud business didn't accelerate much during the quarter compared to the period a year earlier and was "disappointing" given the momentum at Microsoft and Google's cloud-computing divisions.
Amazon president and CEO Andy Jassy indicated that currently AWS faces more demand than it can handle but is investing to meet that demand.
Consensus on Wall Street is that cloud computing, which is highly profitable and a growing source of Amazon revenue, is becoming ever more important compared to Amazon's huge retail operations.
In a statement about results, Andy Jassy emphasized the company's promotion of AI, saying, "Our conviction that AI will change every customer experience is starting to play out as we've expanded Alexa+ to millions of customers, continue to see our shopping agent used by many millions of customers, launched AI models like DeepFleet that optimize productivity paths for our 1M+ robots, made it much easier for software developers to write code with Kiro (our new agentic IDE), launched Strands to make it easier to build AI agents, and released Bedrock AgentCore to enable agents to be operated securely and scalably. Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I'm excited for what lies ahead."